This bill creates a new federal tax credit called the qualifying water reuse project credit. The credit equals 30% of a taxpayer's qualified investment in certain water reuse projects. Qualified property must be tangible, depreciable property that the taxpayer builds or is the original user of. The bill defines three types of qualifying projects: (1) installing, replacing, or modifying onsite water recycling systems inside industrial, manufacturing, data center, or food processing facilities; (2) replacing freshwater (for example, groundwater) with recycled water supplied by a municipal water provider for producing goods or services; and (3) building or expanding municipal water recycling systems to supply recycled water for producing goods or services. The bill lets a person who transfers eligible property to a utility claim the credit instead of the utility if they enter a binding written agreement. The credit is added to the list of investment tax credits in section 46 of the Internal Revenue Code as a new section 48F. The credit does not apply to property the construction of which begins after December 31, 2032. The effective date applies to periods after enactment under rules similar to existing section 48(m).
No publicly available information on budgetary effects, estimated costs, or federal revenue impact is included in the bill text.
No publicly available information.
No publicly available information.